Perceived psychological contract fulfillment and job attitudes among repatriates: An empirical study in Taiwan

Purpose - This paper aims to investigate the relationships among repatriates' perceived psychological contract fulfillment, counterfactual thinking, and job attitudes. Design/methodology/approach - The paper sampled 135 repatriates from 16 multinational companies (MNCs) in Taiwan through a survey questionnaire. The paper used hierarchical regression analyses to test its hypotheses. Findings - The study results showed that repatriates' perceived fulfillment of their psychological contracts was negatively related to turnover intent and positively related to organizational commitment, after controlling for the variables of change assessments. The study also finds a positive relationship between upward counterfactual thinking and turnover intent and between downward counterfactual thinking and organizational commitment. Moreover, repatriates' perceived fulfillment of their psychological contracts was found to be related to upward counterfactual thinking but not downward counterfactual thinking. Practical implications - A subjective perception of psychological contract fulfillment is a more important predictor of job attitudes than actual changes in position, pay, and skill improvement. Therefore, it is important for MNCs to maintain open communications with their repatriates to ensure clear understanding of the agreement existing between employees and the organization. Originality/value - In the international human resource literature, it is unclear whether the relationship between expatriates' (or repatriates') perceived fulfillment of their psychological contract with their job attitudes are simply due to their assessments of actual changes in pay, position, and skills. In the case of repatriation, the paper clarifies the phenomenon by distinguishing both repatriates' assessments of changes before and after expatriation and their perceived fulfillment of psychological contracts (and their counterfactual thinking).